Weakness on graft is killing investment, says Brand SA’s Thandi Tobias
ANC needs to speak with one voice — and enforce step-aside rule
Thandi Tobias, the chair of Brand SA, says ANC dithering about corruption makes it harder to market SA as an investment destination.
The message being sent out about the country’s attitude to corruption is too inconsistent to be convincing, and the failure of the ruling party to give a clear lead is damaging the prospects of economic recovery.
“This is about the importance of investment. The time has come for the ANC to speak with one voice against corruption, and not just one voice but a strong voice,” says Tobias.
“There need to be very clear messages coming from the ruling party against corruption. The ANC must not be seen to be speaking from both sides of its mouth.”
Tobias was an ANC MP for 15 years during which she served as whip of the finance committee and senior member of the standing committee on public accounts (Scopa) before being appointed in late 2019 to lead Brand SA, which is the official marketing agency of SA.
She says the international perception “that we are a generally corrupt society” has grown while Brand SA attempts to market SA as a progressive country that is on the right track and committed to fighting corruption.
It becomes difficult to take this message seriously when a leader of the ruling party is seen to remain in office while facing criminal charges for corruption, she says.
Although not mentioning him by name this is a clear allusion to ANC secretary-general Ace Magashule, who has been charged with corruption but has been allowed to ignore the party’s step-aside rule.
“The policies of the ANC are very clear. There’s a clear conference resolution that has been taken. It says everybody who is facing charges must step aside,” she says.
“The ANC needs to be strong on that message to make sure that those who are being investigated or charged step aside until they have cleared themselves.
“That will demonstrate how committed the government is to fighting corruption.
“The step-aside rule says to the world that in South Africa everyone is subjected to the rule of law.”
Protestations of innocence are irrelevant in terms of messaging, she says.
“Perceptions thrive more than facts. Once there is a perception that you are unethical and corrupt you need to clear the perception. “Certain individuals need to understand the importance of brands and marketing. These are tools that determine a country’s success. Reputation is everything.”
The fact that President Cyril Ramaphosa and the government have been coming out strongly against corruption is not enough, she says. That commitment needs to be demonstrated by tangible results.
“We are very pleased with the work that is being done by the state capture commission and how the Hawks have responded of late. In the past they were dragging their feet, but currently they are moving with speed.
“But they need support to win their battle against corruption.
“We do need to see consequences. Consequence management is absolutely important if we’re going to change the perceptions of South Africa as a country where the government is weak on corruption.”
Parliament heard recently about the government’s intention to amalgamate Brand SA with two of the country’s other promotion agencies, SA Tourism and Invest SA.
Tobias, who has long pushed for the rationalisation of the three entities, says that Brand SA “will not fade away”.
Unlike the other two it does not deal with specific sectors but “with the reputation of the country as a whole, with SA Inc.
“This needs more than a sectoral approach so our role is way above that of any other institution. We engage stakeholders at the level of the UN and IMF.”
Their country offices work closely with the department of trade, industry & competition and the department of international relations & co-operation to facilitate direct interaction with stakeholders about SA, its economy, its policies and all the issues that
matter to investment decisions.
“They can give us feedback on where we need to apply pressure at home and what needs to be done to improve perceptions.”
She says Brand SA, which costs the fiscus R200m a year, is needed more than ever as SA struggles to cope with the economic collapse caused by the Covid pandemic and the desperate need for investment.
“South Africa needs consistent policies if it wants people to invest. If policies are inconsistent, people are not going to invest, and without investment there will be no economic growth.”
Politicians and policymakers need to be coached in and continually reminded of the need for consistency in their messaging, and no-one is better placed for this role than Brand SA, she says.
“It’s not so much policies that are inconsistent, it’s people who speak inconsistently
about them.
“And the policies need to be implemented. They’re only as good as their implementation.
“It’s not about crafting a good policy and letting it gather dust. It is much more about implementing that policy.” Having policies for structural reform won’t fool investors unless they’re implemented.
Hammering this message home to the politicians is one of BSA’s most critical tasks, she says. It cannot be done often enough.
She says all government officials need constant reminding of the impact their actions have on perceptions about SA which determine whether people will invest in the country or visit as tourists.
Although student fee protests and community service delivery protests encourage a harmful narrative of SA’s deteriorating social cohesion, the real damage is caused by the
response of the police to these protests.
Police authorities need to understand how damaging their failure to manage such situations properly is to the country’s international image, and why this matters.
“We can’t afford to have innocent people being shot by the police.”
Inadequate management of such situations is a serious concern for Brand SA, which has to deal with the negative impact it has on international perceptions, she says.
“We need to keep engaging with stakeholders to make sure that they understand how all these things impact on the image of the country and cost us billions.
“There needs to be more engagement with ministers and deputy ministers” so that they understand how important it is that their words and actions “cohere with the messaging we are giving out and the image of South Africa we’re trying to project”.
We need to see consequences to change international perception of SA as generally corrupt Thandi Tobias
Chair of Brand SA